The Pioneer | PACS to get priority in allotment of petrol/diesel dealerships, purchase of ethanol

Apr 14,2023

Now Primary Agricultural Credit Societies (PACS)  in the country will get priority in allotment of new petrol/diesel dealerships and  purchase of ethanol produced by cooperative sugar mills. They will also be able to apply for LPG distributorship and have the option to convert existing Wholesale Consumer Licensed PACS into retail outlets.

This was decided at a meeting held between Union Home Minister Amit Shah and Union Minister for Petroleum and Natural Gas Hardeep Singh Puri here in the national capital on Wednesday.

The move was taken with an aim to strengthen the PACS as well as pave a way for them to convert into multipurpose economic units, which will provide regular sources of income to crores of farmers of the country and hence realize the goal of ‘Sahakar se Samardhi’ as envisioned by Prime Minister Narendra Modi. Giving details, a senior official from the Cooperation Ministry said that Ministry of Petroleum and Natural Gas agreed to convert existing wholesale petrol and diesel dealership licensed under Primary Agricultural Credit Societies (PACS) into retail outlets, provided they fulfil all the requirements for setting up retail outlets in rural areas, including statutory approvals and other permissions.

The decision also aims to give priority to PACS in the allotment of new petrol and diesel dealerships. Now, PACS have been made eligible to get LPG distributorship as well.

As per an official from the Union Ministry of Cooperation, the existing PACS will be given a one-time option to convert their wholesale consumer pumps into retail outlets. With the eligibility for LPG distributorship, the PACS will become the economic hub of rural development, the official said, adding that the  PACS will become a strong empowered entity after the option to convert existing wholesale consumer-licensed PACS into a retail outlet. In addition to the above, rules will also be changed by the Ministry of Petroleum to make PACS eligible for LPG distributorship.

Also, under the Ethanol Blending Program, the Ministry of Petroleum will ensure that cooperative sugar mills are given priority for ethanol procurement at par with other private companies, explained the officials.

It has also been decided that PACS will be considered under the Combined Category -2(CC 2) along with the freedom fighter and sports quota in the allotment of new petrol/diesel dealerships, he said.